TAX AUDIT SECTION 44AB

Page no : 2

Parth - CA,CS,CMA (Learner) (406 Points)
Replied 17 August 2010

Originally posted by : Aditya Maheshwari
	For tax audit u/s 44AB the turnover of the year is to be seen and if turnover for the financial year exceeds Rs. 40 lakhs that year is liable for audit not the next year. Previous year tax audit applicability is to be seen only in case of applicability of liability to deduct TDS and not for tax audit. SO ur second post is wrong.

Use financial year preceding the previous year instead of "previous year".. It's creating confusions.. :) :)

Kamal Jain (FCA) (200 Points)
Replied 01 September 2010

Dear All

Pls read the date of payment of Royalty once again and then confirm if the reply given by learned CAs is right or wrong.

If the date of Payment of Royalty is 25-03-2009 as mentioned above , TDS is applicable.

However if the date of Payment is 25-03-2010 in that case TDS is not applicable.

Pls correct me if I am wrong.

Viraj (Financial Analyst) (26 Points)
Replied 02 September 2010

yes CA Kamal Jain u r wrong. Previous year does not mean previous year in literal sense. In this TDS shall not be applicable. Hence Expense is ALLOWABLE even if TDS was not deducted for the expense incurred in fy 8-9.